South32 buys 19.9% of American EagleNo, I am not posting on the wrong board. South32 Ltd hsa bought into American Eagle's NAK project at a $0.15 premium giving it a 19.9% interest in the company despite Teck Corp having a 19.9% interest (33.32 mil shs @ $0.875 for $29.16 M). Teck can match this in whole or part maintaining its 19.9% interest or not.
Fortesque's 34.17% ownership of Alta can be reduced and is an inviting prospect for another mining company wanting a stake in a company whose NPV8 at $4.50 lb copper is US$3.2B ($4.46B Cdn). A large number of shares will have to be issued to obtain money for the drill program. Management says at least $10 million will be needed to start.
The most interested party to invest a large sum of money like this would be another mining company wanting a 19.9% stake or an eventual !00%. 28 million shares could be issued at a premium price of $1.00 giving the intertested party the 19.9%. Fortesque could match or partly match this buyin giving Alta up to $56 million for future work. If the company was a well experienced copper miner (in the Andes) Fortesque could be willing to JV Canariaco with them reducing operating risk.
Trading in Alta shares is eeringly quiet. Shares trade at a depressed level. It may be a good time for someone BIG to buyin.